The National Policy on Education and the Minimum standards for School Library Services in Nigeria emphasized the need for functional school libraries and school' library services. For this to be achieved, school libraries should be adequately funded and should operate a separate budget. The budgeting systems proposed in this article include programme planning based budgeting, formula budgeting, incremental and line-item budgeting systems. Varioussources of generating income for school libraries were also discussed and they include internally generated revenue and external sources which include over due library charges, P TA, Library Development Levy (LDL), schoolfees as well as donor agencies. To ensure adequate funding by the management, school librarians are charged with the responsibility of providing adequate services; justify for the need of increase in budget item as well being good records managers, among others.